Why Trump Is Worried About Increasing Income

Trump faces economic challenges as U.S. savings decline and GDP growth slows. (IMG Credit: thestate.com)

The real reason behind U.S. President Donald Trump’s concern over increasing income has come to light. According to an SBI report, America’s net savings have hit their lowest level in 74 years. Since 2011, savings have been continuously declining. The dollar’s surge has stalled and is now beginning to fall.

The economy’s pace is also slowing down. The market boom seen after COVID-19 was merely a result of U.S. government spending. Over the past year, America’s GDP growth rate has dropped from 3.2% to 2.5%.

The report states that the U.S. tariff war will not significantly impact the Indian economy. Only 3.3% of Indian exports to the U.S. will be affected by retaliatory tariffs. India will find alternative markets to compensate for this.

SBI has prepared this report based on Trump’s potential re-election and his tariff policies, analyzing the financial situation in the U.S. According to the report, the American economy is showing signs of weakness.

As Debt Rises, the Dollar Begins to Slip

• The U.S. debt-to-GDP ratio is continuously increasing. The previously strong dollar is now weakening. The market capitalization of the S&P index in the U.S. stock market has shrunk to approximately ₹4,600 lakh crore.
• Trump has imposed a 25% tariff on steel and aluminum imports. This decision, effective from March 13, will benefit India.
• Due to retaliatory tariffs, U.S. imports from India may decline by 3–3.5%, meaning India will face only a minimal impact.
• Production costs in the U.S. are rising continuously. As a result, in February, people’s expectations for employment and business growth diminished.